DCBlessings27 08:07 PM 03-25-2013
My husband was only employed as a contractor until the beginning of March, but he's received about 13K since the beginning of the year. I was off for a bit during this time and my income has been less than $1K. With him making so much, we should make a tax payment by April 15th, correct? He's withholding a lot now, but he didn't start having taxes taken out until March 15th. Since he's working ft now though, if we make one estimated tax payment for him, do we have to keep filing the tax payments for us throughout the whole year even though he probably won't make anymore on his business this year?
TomCopeland 08:06 AM 03-26-2013
Originally Posted by DCBlessings27:
My husband was only employed as a contractor until the beginning of March, but he's received about 13K since the beginning of the year. I was off for a bit during this time and my income has been less than $1K. With him making so much, we should make a tax payment by April 15th, correct? He's withholding a lot now, but he didn't start having taxes taken out until March 15th. Since he's working ft now though, if we make one estimated tax payment for him, do we have to keep filing the tax payments for us throughout the whole year even though he probably won't make anymore on his business this year?
Yes, file estimated taxes by April 15 to pay taxes on your income for the first three months of the year. I assume his withholdings through March 15th won't be enough to cover the taxes you both will owe. Therefore, file Form 1040ES. At the end of May, determine how much money you both made in April and May and then decide whether you will owe estimated taxes for these months. If so, file another 1040ES for those 2 months. If your family doesn't earn enough to owe any taxes for any quarter of the year don't file 1040ES for that quarter.
DCBlessings27 09:17 AM 03-26-2013
Thank you so much!